Five Saving Strategies

1. Save for emergencies

Having an emergency savings fund may be the most important difference between those who manage to stay afloat and those who are sinking financially.

For additional information, click here.

2. Pay off High Cost Debt

The best investment most borrowers can make is to pay off consumer debt with double-digit interest rates. For example, if you have a $3,000 credit card balance at 19.8%, and you pay the required minimum balance of 2% of the balance or $15, whichever is greater, it will take 39 years to pay off the loan. With accumulating interest, you will pay more than $10,000 in interest charges.

For additional information, click here, or see the National Foundation for Credit Counseling website at www.debtadvice.org.

3. Save automatically using an allotment with myPay

These savings will provide funds for emergencies, future consumer purchases, home purchase, school tuition, or even retirement (also see Tip #4). You can use one (or more) of your six discretionary allotments to automatically transfer funds monthly from your into a savings account. Saving automatically is the easiest and most successful way to save.  What you don't see, you will probably not miss.

 

The people of the Defense Finance and Accounting Service (DFAS) take pride in serving the men and women who defend America. We take our contributions to national defense seriously. We work hard to fulfill the important fiscal responsibilities entrusted to us by the American taxpayers.

For additional information, click here.

4. Participate in the Thrift Savings Plan

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. It was established by Congress in the Federal Employees' Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

For additional information, click here. Don't forget to have your spouse or family member save for their retirement as well.  Click here for more information on saving for retirement.

5. Deploying?  Take advantage of the Savings Deposit Program

A total of $10,000 may be deposited during each deployment and will earn 10% interest annually. You cannot close your account until you have left the combat zone, although your money will continue to draw interest for 90 days once you’ve returned home or to your permanent duty station.

For additional on the Savings Deposit Program, click here.

Tip of the Day

  • Summer is a great time to teach your child about finance. Start with the Money as you Grow program http://moneyasyougrow.org/ 

Pledge to Save

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Pledge to Save

Saver Stories View all »

One Sailor's Course to Financial Freedom

We all know its not easy to get out of debt once you in over your head. But it can be done with the sound advice and support that the Military Saves program offers. I am a testament to that. I was a recently divorced, single mother. Like many people I had credit card debt, a car loan, bad credit, and a low income job that never seemed to be enough to put food on the table.

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Making Savings a Part of Marriage

Capt. Rob Eckhardt is the first to admit that he hasn’t always been responsible with money. But less than 10 years after a rocky start to saving, Eckhardt reports that he and his wife are free from credit card debt, have a down payment on a home, and are saving regularly for retirement. And, as the Military Saves representative for his Air Force squadron, he’s helping others make similar progress.

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A Plan for Success

SSGT Zuniga

I’m Staff Sergeant Robert Zuniga and I have been an active duty Air Force medic for eight years. I plan on staying in long enough so that I can retire at 20 years. I have always been interested in personal finance and would like to share how it IS possible for me and my stay-at-home wife and two kids to not only save and invest a ton of money but also have a lot of responsible fun as well on 'low' enlisted pay. You CAN do it too!

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